FHA LOANS - Purchase or Refinance in MN, WI, or SD

FHA insured mortgage loans are
some of the most popular home loans for a variety of
reasons, especially for first time home buyers.

Some of the biggest reasons
people choose FHA Loans are:

As little as 3.50% down
payment

More lenient credit
profile allowed

Gift from family for down
payment allowed

Non occupant co-signer
allowed

Can combine with down
payment assistance programs

Streamline Refinance - No
appraisal required

FHA DOWN PAYMENT SOURCE

FHA allows the borrower to get the funds necessary to close from several sources. They include such areas:

Personal savings or
checking account

Gifts
from blood relatives (mom, dad, brother, sister, etc)

401(k) or other retirement
account

Down payment assistance
programs

FHA LOAN
CLOSING COSTS

All mortgage loans have
closing costs. You can pay for them a few different
ways:

Out of pocket

Add them to the loan
amount (known as seller paid closing costs)

Add them to the interest
rate

A combination of any of
all of these

FHA LOAN APPROVAL

Most loans use a method of analyzing credit called credit scoring in the underwriting process. Studies have demonstrated a direct relationship between low credit scores and higher mortgage delinquency rates. As a result many lenders have established minimum credit scores at which they will accept loans.

A lack of credit, old delinquencies,
late payments, foreclosures, bankruptcies, or simple incorrect information on the credit report can cause a low credit score.

FHA does not have specific credit score requirement,
with a big down payment, But FHA does require at least a 580
score to have a loan with less than 10% down payment.

FHA doesn't actual provide
loans. Lenders do. FHA issues insurance backed by the Federal Government. This insurance protects the lender from losses suffered if the
loan goes into foreclosure. Because of this additional
insurance, lenders are more willing to lend. BUT, lenders
can still require their own additional requirements.

Most FHA Lenders REQUIRE a
Credit Score of 620 or Higher

FHA is NOT a bad credit
program. The underwriter on an FHA loan will review the credit and payment history of a customer concentrating on the most recent 12 to 24 months. If the customer has had a good payment record over the past 12 to 24 months they can often get approved for a mortgage even when Conventional financing has turned them down. An experienced loan officer can help the customer clearly tell their story and will often make suggestions as to how to make the file more acceptable to FHA.

FHA BACK TO WORK PROGRAM

FHA typically requires someone
to be at least two-years out from a bankruptcy, and
three-year out from a foreclosure in order to qualify for a
new FHA loan. Recently, FHA came out with a program to
significantly reduce that waiting period. The program is
called "BACK TO WORK". Read more about the
Back to Work program
here...

FHA 203k LOAN - Perfect for
fixer Uppers

In today's market, there are
many homes in need of a little tender loving care. FHA
has a rehab program for fixer uppers, know as the FHA 203k
loan. This program provides you the money to buy the house,
and get additional money to bring the house up to code, or
fix the items that need repair. New roof, carpet,
paint, plumbing, appliances, to even repairing wells and
septic systems.

The program is very detailed -
so be sure to work with an FHA 203k specialist like the ones
at Mortgages Unlimited to make sure your rehab project goes
off without a hitch. Call today for more information.

FHA Streamline Refinance

For existing FHA loans, you
can refinance without an appraisal, making the
streamline refinance
available even to those who may have lost value, or are
actually underwater on their loan.